Avina Invests $820M in Illinois Clean Hydrogen Facility
Avina Clean Hydrogen Inc. has announced plans to invest $820M into building a sustainable aviation fuel (SAF) plant in Southwest Illinois. The green energy company self-describes as “a pioneer in… green fuels” on a mission to accelerate the energy transition for hard-to-decarbonize industries.
Illinois government representatives have welcomed the decision as an opportunity to advance economic and environmental goals.
In making one of the latest moves in a global shift toward sustainable energy, Avina has the potential to help mitigate aviation emissions across the Midwest. Let’s explore that potential based on the details announced by Avina leadership and Illinois government officials.
What is Sustainable Aviation Fuel (SAF)?
In the words of aerospace and aviation giant Boeing, “Until recently, fossil-based liquid fuel has been the primary energy source and carrier for powering flight. Aviation is transitioning to renewable energy sources to reduce life cycle CO2 emissions.”
Carbon-neutral energy sources used for powering aircraft are commonly known as sustainable aviation fuel, or SAF for short. Rather than a specific fuel source, SAF is a broad category that can refer to several varieties of renewable energy, including:
Within SAF sources, there are two additional broad categories: drop-in and non-drop-in fuel.
Drop-in fuel is compatible with existing systems without any new or specialized equipment (like the corn-based ethanol in most U.S. gasoline). These are the simplest to implement because users simply “drop them in” the same tanks as traditional fuels.
Non-drop-in fuel requires specialized equipment, vehicles, or both. Electric vehicle (EV) batteries fall into this category because recharging is a fundamentally different process from refueling.
The common feature of all SAF is carbon neutrality, meaning its production and use results in net-zero greenhouse gas (GHG) emissions.
Despite the implication of its company name, Avina Clean Hydrogen announced its licensing of PureSAF alcohol-to-jet systems for the new facility. This proprietary technology was developed by Swedish Biofuels, the managing director of which described it as "...advanced technology that produces jet fuel … from a variety of feedstocks at low cost and on an industrial scale."
Feedstocks PureSAF can turn into drop-in jet fuel include alcohols, synthetic gases, and carbon dioxide, “creating pathways for utilizing captured carbon for a cleaner, more sustainable future."
Benefits of Avina’s Illinois SAF Facility
Avina’s decision to set up shop in Illinois was no coincidence. The move was encouraged explicitly through government incentives and undoubtedly aided by the state’s central role in international economies. Strategic benefits aside, the proposed facility has the potential to positively impact Illinois and beyond.
Job Creation
Avina’s new SAF facility is planned on a 90-acre plot of industrial land in East Saint Louis. Site development is expected to employ 1,000 construction professionals. In a region designated as an “underserved area,” these jobs could offer an impactful opportunity.
Once construction is complete, the facility plans to employ at least 157 full-time permanent staff—including operators, engineers, managers, accountants, and more. Under Avina’s agreement with the state, these new employees must receive compensation of at least 120% of the county average for similar roles.
Between the massive pool of temporary job creation and the long-term addition of over 150 full-time roles, the SAF plant will involve collaboration among professionals from many disciplines.
Carbon Emission Reduction
The transportation industry contributes an estimated 29 percent of U.S. greenhouse emissions, due largely to its reliance on petroleum-based fossil fuels. Unfortunately, it's also one of the harder-to-abate sectors with its requirements for long-distance and continuous travel.
This is where SAF comes in. Avina’s new facility is expected to produce 120 million gallons of sustainable aviation fuel and prevent 25 million metric tons of carbon emissions annually.
Much of the SAF produced will be routed to the nearby Chicago O’Hare International Airport, which accommodates tens of millions of passengers each year. As noted in Shah’s statement of Avina’s plans, the new facility will likely help fuel airports across the Midwest.
Economic Growth
Avina’s decision to establish SAF production in Southwest Illinois was welcomed by Gov. JB Pritzker who said the facility will “support our ambitious goals for a clean energy economy.”
The “goals” mentioned are those outlined by Illinois’ 2024 Economic Growth Plan, which aimed to attract investors, create new jobs, and lay “the foundation for economic growth for generations to come.”
The specific provision that Avina will benefit from is named Reimagining Energy and Vehicles (REV), and will incentivize manufacturers across renewables sectors to expand in or move to Illinois.
Avina Founder and CEO Vishal Shah also noted plans to use "...existing rail and pipeline infrastructure for efficient delivery of ASTM-certified fuel to Chicago O'Hare and other major airports around the Midwest region."
Over time, the new facility will generate more capital through tax revenue, local infrastructure use, and indirect contributions to market growth.
Alternative Fuel’s Role in the Future of Energy
SAF is part of a wider movement to shift energy systems from fossil fuels to sustainable and renewable alternatives.
While Avina has opted for alcohol-to-jet systems, SAF can also be sourced from feedstocks like wastewater, plant matter, solid waste, and more.
Hydrogen fuel cells have also shown great potential for decarbonizing aviation and other energy-intensive sectors, such as maritime transport and power generation.
Each alternative adds more opportunities for enterprises to transition to clean and renewable energy sources. Technological advancements like SAF make sustainability more financially and operationally viable for public and private entities.
The fact that Avina chose their location with encouragement from Illinois’ incentive program demonstrates the importance of government support at all levels. Hopefully, a successful partnership will encourage similar policies and investors nationwide.
FASTECH: Clean Energy Infrastructure for a Sustainable Future
The nation’s journey to net-zero energy has a long way to go, but strides seem to be made every day. Infrastructural advancements and additions will be necessary to quicken the transition’s progress, especially in hard-to-abate sectors.
FASTECH enables sustainable shifts through infrastructure design, consultation, construction, maintenance, and more.
Clean energy needs a stronger infrastructural foundation to achieve scalable growth. FASTECH’s end-to-end expertise ranges from pipelines to power plants to fueling stations (and all the compliance in between).
Commercial and municipal groups with ambitious sustainability goals are encouraged to contact FASTECH for a free consultation.
